Please take
a moment and read this article. I don’t
see any Canadian thinking any of this is a good idea. I
do see this information going into the memory hole as
quickly as it came up unless we decide to do something
about it.

Government assets could go on block
Finance Department looking at ways to keep deficit down
The Harper government, under pressure to prevent the
federal deficit from ballooning, is pressing ahead with
an asset review that could lead to the sale or
privatization of several well-known Crown corporations,
including Canada Post, Via Rail, the Royal Canadian Mint
and the agency that oversees security at Canada's
airports.
The government signalled
its intent to sell Crown assets last fall, but it was
only in the federal budget that it identified the four
ministerial portfolios to be reviewed first: Finance,
Indian and Northern Affairs, Natural Resources, and
Transport and Infrastructure.
Some of the Crown
corporations that fall under the authority of those
departments have been known to be on the block for some
time, such as Atomic Energy of Canada Ltd.
But the review also will
cover some names likely to raise eyebrows, especially in
the Transport portfolio, which includes Canada Post, Via
Rail, the mint, and the Canadian Air Transport Security
Authority.
In the next few months,
Finance Department officials will ask each of the four
departments to identify assets that could be sold,
including any real estate in their portfolios. Although
the process is still at a preliminary stage, Finance
officials have not ruled out any Crown corporations from
the review.
"The corporate asset
review is proceeding as planned," Mike Storeshaw, a
spokesman for Finance Minister Jim Flaherty, said in an
e-mail. "Departmental officials will be working over the
coming year to analyze the relevance of specific assets
to the government's core responsibilities."
The budget states that
Finance officials could conclude that "selling an asset
to a private-sector entity may generate more economic
activity and deliver greater value to taxpayers."
The challenge for the
government is that its budget forecast is based on the
aggressive assumption that officials will be able to
raise as much as $4 billion through sales or
privatizations by the end of March 2010.
Flaherty started musing
publicly about selling Crown assets in November, but
department officials only formally launched the review
process after the budget was introduced on Jan. 27. That
gives the government about 14 months to oversee a
large-scale divestiture of assets, a complex process
that will involve numerous layers of bureaucracy, might
require major legislative amendments, and could create
serious political headaches for the Harper cabinet.
If officials can't find
enough assets to sell, the government could be forced to
revise its forecast to show a bigger deficit for
2009-10, when the deficit is already expected to hit $34
billion.
In deciding which assets
to put on the short list, Finance officials will
consider a number of criteria, including whether Crown
corporations are still meeting their stated policy
objectives, whether assets can be sold within the tight
time frame set by the budget, and how best to maximize
returns for taxpayers. Eventually, the review will be
expanded to include all government departments. The
review of the Canadian Heritage portfolio, which
includes the CBC and the Canada Council for the Arts,
could be a political minefield.
Another option for the
government will be to expedite the transfer of surplus
real estate from departments to Canada Lands Co., a
Crown corporation that sells rezoned federal lands to
private developers.
"We have had calls from
different people in the government who know our work and
respect us and wanted to know . . . whether we thought
we'd be able to take on more properties," said Canada
Lands vice-president Gordon McIvor, adding that the
company plans to sell numerous assets this year,
including a residential development on a former military
base in Calgary and parts of a harbour-front
redevelopment in Montreal.

UNDER REVIEW
Finance
Bank of Canada
Canada Deposit Insurance
Corp.
Canada Development
Investment Corp.
Canada
Pension Plan Investment Board
PPP Canada Inc.
Indian, Northern Affairs
First Nations Statistical
Institute
Natural Resources
Atomic Energy of Canada
Ltd.
Cape Breton Development
Corp.
Transport
Atlantic Pilotage
Authority
Blue Water
Bridge Authority
Canada Lands Company Ltd.
Canada Post Corp.
Canadian Air Transport
Security Authority
The Federal Bridge
Corporation Ltd.
Great Lakes
Pilotage Authority
Laurentian Pilotage
Authority
Marine Atlantic Inc.
National Capital
Commission
Old Port of
Montreal Corporation Inc.
Pacific Pilotage Authority
Parc Downsview Park Inc.*
Ridley Terminals Inc.
Royal Canadian Mint
Via Rail Canada Inc.
-- annual report to
parliament
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